South Korean Won Weakens

2026-04-29 06:10 By Erika Ordonez 1 min. read

The South Korean won weakened toward 1,477 per dollar after touching a one-week high, as investors remained cautious ahead of the US Federal Reserve policy decision and continued to price in elevated global energy costs.

Risk sentiment was pressured by uneven performance in Asian equities and renewed caution around global technology valuations, supporting modest dollar demand and limiting appetite for risk-sensitive Asian currencies.

At the same time, elevated crude prices, with Brent holding above $111 per barrel amid ongoing geopolitical uncertainty and supply-side disruption, added pressure through higher import cost expectations for Korea, reinforcing a weaker bias in the currency.

This also kept concerns elevated over Korea’s external balance outlook, given its reliance on energy imports.

Fed policy expectations remained largely steady, with markets fully pricing in a hold ahead of the meeting outcome and offering little offset to dollar strength in the near term.



News Stream
South Korean Won Weakens
The South Korean won weakened toward 1,477 per dollar after touching a one-week high, as investors remained cautious ahead of the US Federal Reserve policy decision and continued to price in elevated global energy costs. Risk sentiment was pressured by uneven performance in Asian equities and renewed caution around global technology valuations, supporting modest dollar demand and limiting appetite for risk-sensitive Asian currencies. At the same time, elevated crude prices, with Brent holding above $111 per barrel amid ongoing geopolitical uncertainty and supply-side disruption, added pressure through higher import cost expectations for Korea, reinforcing a weaker bias in the currency. This also kept concerns elevated over Korea’s external balance outlook, given its reliance on energy imports. Fed policy expectations remained largely steady, with markets fully pricing in a hold ahead of the meeting outcome and offering little offset to dollar strength in the near term.
2026-04-29
South Korean Won Gains
The South Korean won strengthened toward 1,473 per dollar, recovering from a recent two-week low, as the dollar softened and risk sentiment steadied after recent volatility. The easing in the greenback provided short-term relief for Asian currencies, including the won, following recent safe-haven demand. In addition, risk sentiment improved across regional markets, with South Korea’s KOSPI extending to fresh record highs, helping reduce near-term dollar demand and supporting a mild recovery in the won. Stronger-than-expected domestic economic growth also remained a supportive backdrop, as it reduced expectations for Bank of Korea rate cuts and offered additional stabilization to the currency. However, gains remain limited as elevated energy prices continue to weigh on Korea’s external outlook. Brent crude above $107 per barrel and ongoing disruption risks in the Strait of Hormuz kept import costs high, reinforcing inflationary pressures through oil and LNG channels.
2026-04-27
South Korean Won Remains Under Pressure
The South Korean won traded near 1,480 per dollar, remaining under pressure as a firm US dollar and broad risk-off sentiment continued to weigh on Asian currencies. Sentiment remained fragile amid geopolitical tensions in the Middle East, where disruptions in the Strait of Hormuz following vessel seizures and increased US naval activity continued to raise concerns over potential energy supply risks. Elevated oil prices are reinforcing global inflation worries, which in turn support the dollar through tighter financial conditions and stronger safe-haven demand. At the same time, foreign flows into Korean equities showed signs of softness, with investors trimming exposure after recent gains in large-cap technology names, limiting support for the won. Still, South Korea’s economy expanded 1.7% in the first quarter of 2026, the fastest in more than five years, driven by strong semiconductor exports and investment, though this offered limited offset to currency weakness.
2026-04-23